miller going inside breaking back out. most teams don't usually do that. >> jim: third and 11. they blitz. raiders -- that is short. one hop to murphy. >> phil: ray lewis called it an incomplete pass that time. >> jim: they're going to punt it. >> phil: that's the right decision. here he comes from this side. watch him come from underneath, and he just overpowers. zach miller and what it does, watch jamarcus russell flinch. oh, he gets it, he throws -- that makes the football come up short. >> jim: oakland punts away. if you a just joining us here in oakland.

a fair catch by carr at the seven. for those of you expecting to see "60 minutes" this is the "nfl on cbs." the ravens and the raiders with baltimore needing a win here to make the postseason. jim nantz and phil simms on the call here. a 21-13 ravens lead. "60 minutes" will be seen in its entirety. it's been a big day for willis mcgahee, all three of the touchdowns. >> phil: grubb gets on it. and how about this, nine people to stop the run, mcgahee -- oh, boy, all the scores and touchdowns. grubbs is pulling -- >> jim: first down at the raiders defense. and mcgahee held to one yard by scott and others. so the raiders defense must make the play here. oakland with two timeouts.

>> phil: for the people just joined us too, jim, the raiders, they have been all over this, they have had many opportunities to be closer or to be leading. but the ravens with a couple big turnovers, taking advantage of it, big play. that's why they're leading 21-13. >> jim: now if the scores hold up, if kansas city wins, baltimore winning here, the ravens would be in, pittsburgh would be out, and then it would be houston or the jets in the last spot. jets would claim it with a victory tonight. if they lost, theled go -- it would go to houston. baltimore last year all the way to the afc title game. out of the six spot. trying to get in again. second down and nine. to the 14 for four yards, and a

timeout called by oakland. now, if baltimore wins again, guaranteed to be playing at new england next week. they were in new england on october the 4th. week four. and here's some of the action. randy moss caught that one for a score. that was a crucial drop late in the game by clayton, remember that? >> phil: yeah, i do. >> jim: they would drive it down, down six. 27-21 victory ended up for new england. >> phil: well, what do you here? if you're the baltimore raven, you basically need one first down. if you get a first down here, it almost wins the game for you. the raiders are out of timeouts. >> jim: what will they do? will they go up top? >> phil: my first thought is they will run it.

>> jim: they're going to go out of the gun. it's mcgahee, he's got a wide-open hole, and he is tackled at the 50 by eugene. only fitting that on the day where he's been the difference maker he goes for 36. willis mcgahee. >> phil: oh, what a block. the raiders not even play and run and the baltimore ravens if you watch this last quarter, they got on the sidelines and somebody must have said we're going to win this game because we're going to do it up front and run the football. and how about that? back inside their ten, three running plays. put it on the old line of your defense. >> jim: we have reached the two-minute warning. no more timeouts for the raiders.

host: does charlie daniels play a mean fiddle? ♪ fiddle music charlie:hat's how you do it son. vo: geico. 15 minutes could save you 15% or more on car insurance. who's been on an airplane before? me!! ( laughter) this is who i am. this is what i do. ( cheering ) this is who i am. this is what i do. now what do you guys want for dessert? brownies. brownies. that big? this is who i am. ♪ that's a lot of people.

to prove my point i asked gary here to friend request all of them. how's it coming, gary? [ ding ] we got one! that's good. oh! ah, wow. [ dinging continues ] becoming a popular guy. [ rattling ] [ male announcer ] want 3g coverage? we've got it. 230 million people in 9,400 cities. let's get out of here. ok. [ male announcer ] at&t. get an exclusive pantech messaging phone free after mail-in rebate. only from at&t. >> jim: well, i'm afraid with that mcgahee run, a lot of

hearts sinking in the steel city of pittsburgh. they needed baltimore and then the jets tonight, oakland can't stop the clock. out of timeouts. tonight, "60 minutes" the man who hid billions of dollars for rich americans tells the secrets of swiss banking on "60 minutes" followed by "ncis". kansas city up 20 with about six minutes to go. unless denver storms back and makes an unbelievable comeback, and then it will come down to the jets tonight. but a loss in houston would make the postseason for the first time in franchise history. >> phil: those two teams, meet in week one. a good win by the baltimore ravens here. and i thought the raiders fought hard. showed a lot of good stuff about their football team. you know, seems like we did this

last year. there are components here to build a team that can be in the thick of the playoff race. it's the -- but the ravens a gut check, didn't throw the ball well today, but they ran it well. that was the difference for them. >> jim: one more snap and baltimore can make plans for foxborough. baltimore is in. so the ravens have qualified and pittsburgh is officially eliminated. and denver is about six minutes away from seeing its hopes end as well, as kansas city shocking them. charles for over 250 yards rushing for the houston team. so the raiders are 5-11, another year with at least 11 losses for the raiders. now seven straight years with at least 11 losses.

back to back years for flacco and the ravens. see you next week in the playoffs. let's go to j.b. in new york. >> james: all right, let's go out to the contest of kansas city and denver. kansas city is on top. let's join dick enberg and dan faust. >> dick: the denver broncos are favored to win. they need help from two of those teams losing today and one of them being the baltimore ravens who have won. but meanwhile, kansas city is putting a punishing loss on the hometown broncos as they lead in the game 44-24. three unanswered touchdowns, a couple of interceptions. touchdown returns by johnson the

linebacker and jamal charles having the greatest running day with 25 yards and they built up a huge lead. there's nearly another interception by brandon flowers, ducking in front of brandon floyd. >> dan: the kansas city defense adjusting in the second half. >> da >> dick: clock running to the five-minute mark. the tackle of daniel graham across the 40-yard line. as travis daniels up to make the stop. it was tied at ten at the half, and at 17, in the middle of the third quarter. and then the kansas city chiefs won only two games last year.

they came on defensively and offensively. gaffney who had a brilliant first half. ten catches in the first half. gaffney was getting a lot of chances because brandon marshall not in universe today. eddie royal not in uniform. he's injured. scheffler and marshall sidelined. coach's decision not to have them active today. and one has to wonder what impact that had on the denver bronco operation this week. >> dan: it seemed to have more of an effect on the denver defense. you talked about the rushing yards that the bronco defense has given up today. that's so uncharacteristic. of a mike nolan football team. >> dick: throw, incomplete. no flag on the play. that's derrick johnson the man who has two interception touchdowns, to tie the nfl record in the game. >> dan: he's guarding a wide receiver, brandon lloyd. it turns into a running back, makes a couple of moves, gets

into the end zone and then is playing possum. there was nothing but the end zone in front of him. and how about this capper of a day for jamal charles, breaking tackles, and then outrunning the secondary to the end zone. >> dick: that was the last kansas city score, and charles has 259 yards of kansas city rushing, a record many a single game. he's over a thousand yards. so baltimore has clinched with a win in oakland. the jets play cincinnati tonight. they need to win, they're in. denver absolute miracle for them to get in now. they needed a win, and a loss by the jets. houston has a chance. they would clinch with losses by the jets and denver. it appears half of that combination are about to be accomplished and then it would come down to cincinnati and the jets tonight. so at the 40-yard line, clock

running against the broncos. they have all three timeouts. >> dan: that will be interesting to see how that cincinnati and jets game does unfold. cincinnati was real -- with really nothing to play for. >> dick: well, with pittsburgh losing today, they would just trade third seed for fourth seed. throw over the middle and complete to stokley. stokley inside the 25 to the 23. belcher brought him down. clock ticks towards three minutes left. and with the win by the baltimore ravens, the steelers who needed three teams to lose today, their hopes are now faded off to 2010. looking for the touchdown -- to gaffney. intercepted in the end zone by brandon flowers, and this will be the final dagger. here at mile high, in denver,

where brandon flowers has just intercepted the kyle orton pass in the end zone and that all but takes care of business for the underdog chiefs who have thrown a big upset log on the denver fire and their chances for a playoff are gone. >> dan: well, he just patiently awaits for ball to come down. brandon flowers, his fifth pick of the year. third interception thrown today by kyle orton. just a desperation throw to the back of the end zone. you've got to do it. sometimes it doesn't work out the way you want it. >> dick: two teams that rebuilt under new coaches this year. the broncos started 6-0, and with a loss today they will have finished 2-8. that's williams with a carry and a short yardage and kansas city with only three wins -- one of them an overtime victory over the steelers that impacted the steelers chances -- the super bowl champs to defend their crown. then they came here to denver. we asked coach todd mayly and

the players, what's your motivation, what are you going to tell your players, what motivates them to want to win this denver today? >> dan: number one, they wanted to broncos -- they wanted to knock the broncos off. they play twice a year, nothing sweeter than to beat somebody -- to knock them out of the playoffs especially when you have a disappointing year. i like what haley said about evaluating players for next year, he got the message across to the team. because they were highly motivated to come out and play well today. >> dick: now trying to run out the clock, again to williams. 2:30 left in the game. here's the playoff picture. new orleans and minnesota gets the bye. dallas has beaten philadelphia, so they will move up to 11-5. so they have the number three seed. arizona number four. then the wild cards, green bay and philadelphia.

>> dan: how about what green bay did today to arizona and dallas over philadelphia. philadelphia looked so good last week in the first half against the broncos, played really poorly in the second half. eked out a win with the last-second field goal and then today, they don't even show up in dallas. >> dick: and with all the complications of the playoff picture, especially in the afc side down, we're down to one game tonight and that's still -- that still carries some weight. cincinnati and the jets. williams again with the call. he gets out close to the first down at the 29-yard line. tennessee state rookie, and denver uses its final timeout at the 2:25 mark. "60 minutes" to follow at the conclusion of the game here in denver. except for those of you watching on the west coast, it will be seen at the usual 7:00 time. yeah, that look -- kind of a snarly look there from andre

goodman. that says all this work, all this hope, starting so well, 6-0 and to finish this way. how disappointing. >> dan: each play by derek johnson with the interception, this is one of two which ties an nfl record. here's his second one. this one went a long way as he is hit from kyle orton and then chairmans with the out -- and then charles with the outstanding afternoon. twice in the end zone. >> dick: here's a young star in the making, jamal charles who didn't really start as the featured running back until johnson left town in kansas city in midseason. and drives it deep for alfonzo smith. he's surrounded by white jerseys. the lateral is off to ellis. no, that's -- that's to josh

barrett. he's tackled at the seven-yard line. that defines absolute difficulty for denver. and here's the afc playoff picture. indianapolis, san diego have long since clinched their bye week. if the jets win tonight, they'll be the number five seed. and they would turn right back and play new england. play new england. so -- excuse me, they would play cincinnati. i thought that that could be a rematch. they would play again next week. orton underneath to gaffney. gaffney has had a career day. out across the 25-yard line. and gaffney will say at least i finished the year on a very high

personal note. host: does charlie daniels play a mean fiddle? ♪ fiddle music charlie:hat's how you do it son. vo: geico. 15 minutes could save you 15% or more on car insurance. who's been on an airplane before? me!! ( laughter) this is who i am. this is what i do. ( cheering ) this is who i am. this is what i do. now what do you guys want for dessert? brownies. brownies. that big? this is who i am. ♪

that's a lot of people. to prove my point i asked gary here to friend request all of them. how's it coming, gary? [ ding ] we got one! that's good. oh! ah, wow. [ dinging continues ] becoming a popular guy. [ rattling ] [ male announcer ] want 3g coverage? we've got it. 230 million people in 9,400 cities. let's get out of here. ok. [ male announcer ] at&t. get an exclusive pantech messaging phone free after mail-in rebate. only from at&t. >> dick: two-minute timeout and the reminder after the game to

stick around for "60 minutes", "ncis" and back to back episodes of "cold case". broncos with the ball at their 27-yard line. the dumpoff pass complete for buck holder. he can't get out of bounds, tackled by rookie price. and brandon carr. gaffney to complete his story, 14 catches for 213 yards. his best-ever game, the wide receiver for the broncos, empty statistics for this young guy. and a tough loss, 44-24 the score. kansas city about to win for the first time on this turf. they have never won at invesco. 0-8. this is moreno, the rookie, out to the 44-yard line, no timeouts remaining for the broncos. >> dan: and buckholder had the limp off the field after the previous play. he limped off last week against the philadelphia eagles.

>> dick: first down at the 44, and clock running to the one-minute mark. very loose defense for kansas city. so orton has to go underneath to the short pass to graham the tight end. johnson with the tackle. and sparked by the kansas city record, 259 yards rushing in the game and a couple of touchdowns and two interception touchdowns by johnson to tie an nfl record. no one has ever returned three in one game. quite a performance. >> dan: you wonder if it might be an omen for the texas long horns with jamal charles and derek johnson being a couple of long horns. big game coming up for the long horns and alabama. >> dick: relishing and will enjoy the trip home with their fourth win of the year. this is the start of the new season, the first game in

january of 2010. moreno trying to get out of bounds and does at the 22-yard line. but that as the final second ticks away and that's the end of the season for both of these teams. disappointment in denver after a 6-0 start, they finish 2-8. losing to kansas city, 44-24 today. tonight on cbs, "60 minutes", followed by "ncis" and "cold case". happy new year, so long from denver. you have been watching the "nfl on cbs," home of super bowl xliv. anncr vo: ...find a nearby tow truck or gas station... anncr vo: ...call emergency services... anncr vo: ...collect accident information. anncr vo: or just watch some fun videos. anncr vo: it's so easy, a caveman can do it. caveman: unbelievable... caveman: where's my coat? it was suede with the fringe.

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>> kroft: bradley birkenfeld spent most of the last decade living in switzerland, helping wealthy americans hide their money. tonight, you'll hear how he did it, and how he touched off an investigation that would shake 300 years of banking secrecy to the foundations of its underground vaults. how unusual is it for a swiss banker to come forward and say, "this is how it works"? >> it's never happened before in history. i'm the first one. >> pitts: there is a sacred tradition in the military-- leave no one behind on the battlefield. but many veterans are beginning to believe their country has left them behind at home, once they're out of uniform and in need of help. that help is supposed to come from the department of veterans affairs. and today, there are a million veterans waiting for the v.a. to handle their disability claims. you served your country for 18 years. >> yes. >> pitts: is your country serving you now?

>> it's not my country that's doing this; it's the v.a. >> simon: elephants communicate in a complicated, sophisticated language that scientists are trying to decipher and compile into the world's first elephant dictionary. >> there are protest calls. ( loud roaring ) in newborns, we have a very high cry, and when you hear it, you know it's a very, very young calf. ( high-pitched cry ) >> simon: these fearsome noises... ( elephant rumbling ) ... are actually elephants greeting one another: "glad to see you." "come a little closer." ( elephant rumbling ) >> i'm steve kroft. >> i'm lesley stahl. >> i'm bob simon. >> i'm morley safer. >> i'm byron pitts. >> i'm scott pelley. those stories and andy rooney tonight on "60 minutes." boss: hey, those gecko ringtones you put on our website are wonderful.

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>> kroft: if there's anything that the swiss take more seriously than the precision of their watches or the quality of their chocolate, it's the secrecy of their banks. the subterranean vaults of geneva and zurich have served as sanctuaries for the wealth of dictators and despots, mobsters and arms dealers, corrupt officials and tax cheats of all kinds. it's a world u.s. law enforcement has rarely been able to penetrate. so the idea that u.b.s., one of switzerland's largest banks, would hand over information on thousands of american tax cheats would have been unthinkable just a few years ago. tonight, you'll hear the twisted tale of how it all happened, from a man some people have

called one of the most important whistleblowers ever, who has been rewarded with a federal prison term and the possibility of endless riches. though he was born and raised in the boston area, bradley birkenfeld spent most of the last decade living in switzerland, helping wealthy americans hide their money. he was based in geneva, where he says there may be more money- counting machines than parking meters, in a country that once bragged it had more banks than dentists. >> bradley birkenfeld: it's not swiss money in those banks; it's foreigners'. you have a culture there that has been ingrained in society about managing people's money protected by swiss bank secrecy. >> kroft: and who has a right to that information, under swiss law? >> birkenfeld: only the banker and the bank itself. >> kroft: how unusual is it for a swiss banker to come forward and say, "this is how it works"? >> birkenfeld: it's never happened before in history. i'm the first one. >> kroft: when birkenfeld, a

mid-level banker with an undistinguished employment history, knocked on the door of the u.s. justice department in the spring of 2007, he touched off an investigation that would threaten one of the world's largest banks with extinction, and shake 300 years of swiss banking secrecy to the foundations of its underground vaults. he did it by providing inside information and documentation that his former employer-- banking giant u.b.s.-- was actively involved in helping its american clients defraud the u.s. treasury out of billions of dollars in unpaid taxes. what do you think was the most valuable thing that you gave to the u.s. government? >> birkenfeld: the amount of clients and the amount of assets managed by u.b.s. in the united states out of switzerland. >> kroft: and that was how much? >> birkenfeld: that was 19,000 clients and around 20 billion swiss francs, which is about $19 billion. >> kroft: of the percentage of american accounts that you represented, how many would you say were trying to evade taxes? >> birkenfeld: my own clients? >> kroft: uh-huh.

>> birkenfeld: i would say about 90%. >> kroft: did people tell you this was their intention when they opened an account? >> birkenfeld: it was the unwritten rule. you didn't have to discuss it. people wouldn't fly all the way to switzerland to open accounts just because they wanted to declare their money. >> kroft: and as a private banker for u.b.s., birkenfeld would help his clients invest, spend and move their money. one example he told us about involved withdrawing cash from a customer's account, buying some diamonds in geneva, and then smuggling them into the u.s. for the client inside a toothpaste tube. birkenfeld claimed it was legal because the diamonds, he said, were worth less than $10,000 and didn't have to be declared at customs. if it was legal, why did you put them in a toothpaste tube? that's why... i'm having trouble with that. >> birkenfeld: oh, it was... it was just a way of carrying them so i wouldn't lose them. where would you put two diamonds? >> kroft: i think i'd put them in a money belt or i think i'd put them in a case. >> birkenfeld: it was a one time event, i... that's not my business. i just put them in a toothpaste

tube. >> kroft: you weren't trying to hide them from customs? >> birkenfeld: no. not at all. >> kroft: buying diamonds and other valuables is just one way of hiding and transporting assets, and birkenfeld insists that he was just providing a service to his clients, which is what swiss banking is all about. >> birkenfeld: people would ask you to make purchases for them, possibly maybe a car or a chalet, possibly a nice watch. so you would also cater to the client in that regard, and then deliver it to them upon their choosing. >> kroft: and what would be their choosing? >> birkenfeld: it could be in their hotel room. it could be in... maybe another country. could be there in geneva. >> kroft: so, you were sort of not just a banker, but also a personal shopper. >> birkenfeld: if you will, at a concierge level. >> kroft: birkenfeld claims his motives in going to the justice department were mostly altruistic. he offered to wear a wire to gather evidence against high- level u.b.s. executives in exchange for full immunity for his transgressions, but the negotiations broke down. and birkenfeld neglected to tell them about his dealings with

this man, california real estate developer igor olenicoff, who was his biggest client. birkenfeld helped olenicoff hide $200 million by introducing him to a consultant who specialized in creating shell companies and sham entities that concealed the ownership of the u.b.s. accounts. >> birkenfeld: i don't sign people's tax returns, so what they do with their taxes is not my business. i'm a banker. >> kroft: so you would steer them to somebody who would help them hide their money? >> birkenfeld: you would recommend them to the... these service providers, that's correct. >> kroft: you must have known deep down that it was illegal? >> birkenfeld: when you came into the u.s., you felt uncomfortable, that's correct. >> kroft: but as a gesture of good will, birkenfeld did give the justice department, senate investigators, i.r.s. agents, and the s.e.c. lots of information about u.b.s and its secret activities. >> birkenfeld: any transaction that happened on an account was held deep in the vault and sealed until the client came to pick it up personally. then, they would either take it with them, which was generally not the case, or they would tell you to shred it, which we would do on behalf of the client.

>> kroft: people didn't have online accounts? >> birkenfeld: it was forbidden. e-banking was forbidden for... >> kroft: and they didn't... >> birkenfeld: ...u.s. clients. >> kroft: ... they didn't get statements in the mail? >> birkenfeld: no. >> kroft: so, if somebody wanted to know how much money they had in the bank and how thei investments were doing, they had to go to switzerland? >> birkenfeld: or maybe see their banker when they came to the u.s. >> kroft: it was those visits to the u.s., which birkenfeld told the government about, that ultimately got u.b.s. in so much trouble. the bank would sponsor lavish events like yacht races in newport, and the art basel modern art festival in miami beach to attract wealthy americans. then, it flew in its bankers from switzerland to mingle and to try and drum up new clients, and conduct business with existing ones. because the swiss bankers weren't licensed to conduct business in the united states, it was a clear violation of american banking laws on u.s. soil, and birkenfeld provided internal documents that proved the length that u.b.s. would go to in order to avoid detection. >> birkenfeld: "call it a vacation rather than a business trip," rather than saying, "oh,

yes, i'm coming to see my private clients here in the united states. and i'm coming in from zurich, switzerland." >> kroft: did you bring records into the country with you when you came in? >> birkenfeld: generally, no, i did not. my colleagues brought in encrypted laptops. >> kroft: encrypted laptops? >> birkenfeld: yes. so that even if they were discovered, you couldn't see what was inside the computers, which were portfolios of the clients, and they were product offerings for the clients. >> thomas perrelli: they were going out of their way to cover their tracks. >> kroft: thomas perrelli, the associate attorney general of the united states, says birkenfeld was not the only person who provided valuable information to the investigation, but he says his evidence that u.b.s. executives encouraged illegal behavior was the bank's achilles heel. >> perrelli: they would bring checks, or sometimes they would actually carry money from one client to the next, all with the purpose of disguising and avoiding detection of large transfers of money. >> kroft: what did that information tell you? >> perrelli: it was certainly surprising that there would be a unit within a major bank that would be behaving in that way. >> kroft: and there was? >> perrelli: and there was. and we subsequently learned that

senior officials knew about this. they knew it was wrong. they called it "toxic waste." but it was very profitable and they didn't stop doing it. >> kroft: based on information provided by birkenfeld, the justice department and the i.r.s. obtained a court order demanding that u.b.s. turn over records on the 19,000 americans believed to have secret swiss accounts. u.b.s. then enlisted the help of the swiss government to try and negotiate a settlement, finally agreeing to pay a $780 million fine, cease its offshore banking activities with americans, and for the first time in history, turn over the names of more than 4,000 u.s. citizens suspected of tax fraud. >> perrelli: i think they knew we had a very strong case. >> kroft: right. and they did that because the u.s. government said that if you don't cooperate, we're going to take away your license to do business in the united states. >> perrelli: well, we certainly told them that we had a strong case for criminal prosecution, and that if we couldn't find another way to resolve that, that that's where this was headed. >> kroft: u.b.s. realized that the justice department was holding all the cards.

it had a major presence in the u.s. and 30,000 employees here, and it could not survive as a global banking power without access to the u.s. market. if you had such a strong case, why didn't you get the names and numbers of every american account holder in switzerland? >> perrelli: we got the accounts that really are the core of the fraud, the... the largest accounts, the accounts that had the... that are most clearly, likely to be associated with fraud. >> kroft: since the scandal broke, nervous clients have withdrawn $160 billion from u.b.s.'s wealth management operation. and 14,700 americans have notified the i.r.s. that they had offshore bank accounts, taking advantage of a program that allows them to pay back taxes and penalties, and escape prosecution, which should provide a windfall for the u.s. treasury. how much in tax revenue do you think you will have gained from this? >> perrelli: i've heard, certainly, the commissioner of the i.r.s. say in the billions of dollars. >> kroft: with the government claiming victory, and u.b.s. breathing a sigh of relief, the only person with grounds to be really unhappy is bradley

birkenfeld, who, the last time we saw him, was wearing an electronic ankle bracelet, and the federal government had restricted his movements to the commonwealth of massachusetts. >> birkenfeld: i gave them the biggest tax fraud case in the world. i exposed 19,000 international criminals. and i'm going to jail for that? >> kroft: as it turns out, while the u.s. government was using birkenfeld's information to go after u.b.s., the justice department was closing in on his biggest client, igor olenicoff, for tax evasion. olenicoff cooperated with the investigation, and paid $52 million in fines and back taxes, and got off with no jail time. but because birkenfeld hadn't told prosecutors about his relationship with olenicoff, birkenfeld was arrested and charged with conspiracy to commit tax fraud. he pled guilty and has been sentenced to 40 months in prison. and he is not happy about it. and you think that you should not be going to jail? >> birkenfeld: i think i shouldn't. >> kroft: even though you violated the law and you were an

enabler. i mean, you were the person who were implementing these policies. >> birkenfeld: and i'm the only one going to prison, out of 19,000 accounts and no swiss bankers. >> perrelli: if he had come forward and told us everything that he knew, a complete and accurate picture in the summer of 2007, we think it's likely he wouldn't have been prosecuted. >> kroft: mr. birkenfeld says the federal government admits that the prosecution would not have been successful without his participation in this. and yet, he is the only one that is going to jail. is that fair? >> perrelli: it is not uncommon for someone to engage in criminal activity and to provide us information, but to also go to jail. >> stephen kohn: the day he walks into prison is the day you will lose a generation of tax whistleblowers. >> kroft: why do you say that? >> kohn: because no one will blow the whistle. >> kroft: stephen kohn is one of birkenfeld's civil attorneys and the head of the national whistleblower center. he believes there may be one final twist in the case that could give his client the last laugh. that's because birkenfeld may

well be entitled to collect tens of millions of dollars under a federal law that rewards whistleblowers with up to 30% of the money that's recovered as a result of the information they provide, even if they end up going to jail. >> kohn: mr. birkenfeld has saved the taxpayers billions of dollars, brought thousands of people to justice. they should blow up his check. the attorney general should shake his hand and look into the camera. and he should say, "i want a message to every international banker that works to money launder against america-- you come here to america; you'll be protected and you'll be rewarded." get 20, get 30 birkenfelds. let's fix this problem. let's lower everybody's taxes. >> kroft: the i.r.s. will ultimately decide whether birkenfeld qualifies for the reward. if he does, they will have to mail the check to federal prison, where birkenfeld is scheduled to report this friday. but it couldn't be worse than returning to switzerland, where he is regarded as a criminal and

a traitor. do you think you'll ever go back to switzerland again? >> birkenfeld: i don't believe i will. >> cbs money watchupdate sponsored by:. >> good evening. federal reserve chairman ben bernanke will not rule out a rise in interest rates to help prevent another housing price bubble. gas is up 6 cents in a week to 2.66 a gallon. and "avatar" was an easy winner at the box office and is already the fourth biggest movie in hollywood history. i'm russ mitchell, cbs news. get out and dance... even play a little hide-n-seek. i'm breathing better... with spiriva. announcer: spiriva is the only once-daily inhaled maintenance treatment for both forms of copd, which includes chronic bronchitis and emphysema. i take it every day.

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it's a new way to conquer budgets. and another great day for the savers. save money. live better. walmart. >> pitts: there is a sacred tradition in the military: leave no one behind on the battlefield. but many veterans are beginning to believe their country has left them behind at home, once they're out of uniform and in need of help. that help is supposed to come

from the department of veterans affairs, and the financial compensation it gives to veterans disabled by their military service. it was abraham lincoln who said the purpose of the v.a. was to, "care for him who shall have borne the battle." but the wars in iraq and afghanistan have pushed the v.a. further behind in that mission, and today, there are a million veterans waiting for the v.a. to handle their disability claims. that's led some to latch on to another motto making the rounds for how the v.a. operates: "delay, deny and hope that i die." >> michael walcoff: when i hear that, i will tell you that it really troubles me. as somebody who has devoted 35 years of my life to this organization and to serving veterans, it's extremely troubling that there are veterans who feel that way. >> pitts: michael walcoff is the v.a.'s deputy undersecretary for benefits. last year, $30 billion- one third of the v.a.'s total budget- was paid in disability compensation to nearly three million veterans.

to receive a disability benefit, a veteran has to be honorably discharged, yes? >> walcoff: yes. >> pitts: they have to have a current disability, and provide evidence that it's... was service related? >> walcoff: that it's connected to their service, right. >> pitts: why, then, is the claim form 23 pages long? >> walcoff: a 23-page application form i think is... probably goes beyond just what is required. and one of the things that we're looking at is to try to simplify the process. >> pitts: that process has been strained by a flood of disability claims, everything from combat wounds to injuries off the battlefield, illnesses and psychological disorders. since 2003, 400,000 claims have come from veterans of the wars in iraq and afghanistan. hundreds of thousands more from aging veterans of earlier conflicts. add to that the recession, which is forcing more veterans to turn to the v.a. for help. paul sullivan was an army scout during the gulf war in 1991, and later spent six years working at

the v.a., analyzing trends in disability claims. >> paul sullivan: all of those things have resulted in the veterans benefits administration facing a backlog of one million claims. >> pitts: the system, as you see it, is overwhelmed now? >> sullivan: absolutely overwhelmed. >> pitts: sullivan is now executive director of veterans for common sense, a group that champions veterans issues. >> sullivan: veterans wait, on average, about six months to receive an initial answer on a disability claim. if a veteran disagrees with v.a.'s decision, the veteran waits another four years. that is a crisis. >> pitts: and that's how army veteran joe devins sees it. in late 2003, he was on patrol in baghdad when he says an i.e.d. exploded near his truck. scare you? stun you? >> joe devins: oh, it was. i mean, i'd say, for the first few seconds afterwards, i wasn't really sure if i was dead or alive. >> pitts: devins left the army

in 2004, and now receives $704 a month for a back injury and for migraine headaches that he says were caused by the i.e.d. devins also claims to suffer from sleeplessness, anxiety and anger. >> devins: i haven't had a single night's sleep without a... either over-the-counter or prescription medication since probably december of '03. >> pitts: yet it wasn't until two years after his discharge that a v.a. counselor told devins he had p.t.s.d.- post traumatic stress disorder-- and should apply for benefits. so he did. then, ten months later, the v.a. rejected his claim. >> devins: they denied the p.t.s.d. >> pitts: because? >> devins: because they said i had to prove... show them proof that the incident with the i.e.d. actually happened. >> pitts: but they were already giving you compensation for the head injury? >> devins: correct. >> pitts: well, doesn't that prove that you were there? >> devins: i... i would think so, but apparently that wasn't

enough proof for them. >> pitts: what do you think they were saying about you, though? >> devins: that i was making stuff up, that... you know, i was just out to get money. >> pitts: the v.a. doesn't say that devins is making up his claim, only that he can't prove it. he gets benefits for migraines simply because they started while he was in the army, but there is no mention of an i.e.d. explosion in his military records. devins' situation is not uncommon. it can be difficult to pin down a particular cause of p.t.s.d., so the v.a. says its changing the rules for these claims. and veterans will no longer have to prove a connection between specific incidents and their post traumatic stress disorder. that will take some of the workload off of people like ron robinson, a v.a. employee for 13 years, and a veteran who spent 20 years in the army. you're proud to serve. >> ron robinson: yes. >> pitts: are you proud to work for the v.a.? >> robinson: of course. >> pitts: are you proud of the work the v.a.'s doing? >> robinson: no.

we can do better. >> pitts: problems in the v.a.'s benefits branch have been the subject of g.a.o. reports and congressional hearings for years. starting in 2007, the v.a. received sizable increases in its budget and began hiring thousands of new employees, yet the backlog of claims keeps growing. >> robinson: we keep trying to fix it, but it keeps getting out of hand. we throw more money at the problem, more people-- we still have the problem. >> pitts: so, what is it, then? if more people can't fix the problem, more money can't fix the problem, how do you fix it? >> robinson: it's a culture, it's a leadership problem. >> pitts: robinson points to the v.a.'s requirement that employees meet production quotas. it's a convoluted system of earning points for processing the paperwork in a claims file. the idea is to bring down the backlog, but robinson says it also leads employees to make mistakes. because they're focused on, as opposed to dealing with this veteran's case properly, they're focused on getting their points

for that case. >> robinson: of course, every... anyone will tell you that. >> pitts: and if you don't get your points? >> robinson: well, people get their points. most people... >> pitts: but if you don't get your points? >> robinson: well, if you don't get your points, you know, you don't get bonuses, promotions, you know, you don't get the bennies. >> walcoff: i don't believe that they're being pressured to produce claims at the expense of quality. we stress over and over again to our employees that quality is our number... number one indicator, that that's absolutely a requirement for successful performance. >> pitts: but last march, the v.a.'s inspector general discovered that the v.a. was making more mistakes than it reported. the internal investigation found that nearly one out of four files had errors. that's 200,000 claims that "may be incorrect." attorney douglas rosinski has been handling veterans cases for ten years. how would you characterize the v.a. disability benefit system? >> doug rosinski: broken. it...it's broken.

>> pitts: this is one vet's file. >> rosinski: i've seen claims files that were two or three of these boxes. >> pitts: claims are being denied unfairly, rosinski says, because v.a. employees don't have the time to read the files thoroughly. >> rosinski: when you get a denial, and it says, "we didn't see...," that's right. i mean, they're not lying, but if you don't look, you don't see. and even if you're looking, it's hard to find out what's in there. >> walcoff: there is no incentive to deny claims. and there's no pressure from anybody to deny a claim. and i... that's... i can't say it any simpler than that. >> byron pitts: david pitts is an air force veteran and one of rosinski's clients. you served your country for 18 years. >> david pitts: yes. >> byron pitts: is your country serving you now? >> david pitts: it's not my country that's doing this; it's the v.a. you know, i'm... there is no prouder american than i am. >> byron pitts: in 1968, pitts was on temporary duty in korea

when the tet offensive in vietnam caught american forces off guard. pitts says he was quickly dispatched to deliver communication codes across vietnam when his helicopter made a hard landing. >> david pitts: when we hit, we hit hard. got out of that and i didn't have any problem for that for about a year. but this was what i started receiving the... v.a. disability for it. >> byron pitts: pitts receives $644 a month for back and leg injuries that he says are related to the crash. he also believes he's eligible for additional benefits because vietnam war vets with illnesses that could have been caused by exposure to agent orange are given automatic compensation. the problem for david pitts is he can't prove he was even in vietnam. he says his two brief assignments were under verbal orders, and he was told there are no records of his having been in the country. >> david pitts: you had people and equipment just flooding into

korea, and suddenly tet happens. and it was just... it was a period of mass confusion. >> byron pitts: record keeping wasn't a priority at the time? >> david pitts: no. record keeping was not any type of priority at the time. >> byron pitts: in recent years, pitts says he tried to find his former commanding officer from korea, plus a hometown friend he says he ran into while in vietnam, but both had died. without corroboration or records, pitts never applied for the benefit. then, in november of 2008-- out of the blue- the v.a. sent him this letter. it says, "according to records with the department of veterans affairs, you were stationed in the republic of vietnam during your military service." >> david pitts: right. >> byron pitts: and you got this letter, you thought what? >> david pitts: well, somebody has found something. >> byron pitts: based on the letter, pitts filed a claim. it took the v.a. ten months to review it before denying it. it's an example of the complexity that both the v.a. and veterans face in establishing what happened,

years, sometimes decades, after events have taken place. the v.a. says it needs evidence to grant a claim, and it could not find any records putting david pitts in vietnam. the v.a. told "60 minutes" that the letter was sent by mistake, something it has not explained to david pitts. the obama administration and the v.a. say they've given top priority to ending confusion over military records, and new computer technology will someday track veterans from their first day in uniform through the rest of their lives. why should veterans believe what you say? that, "ah ha, now we're going to get it right"? >> walcoff: that's a tough question, because, certainly, some of the problems that we see in... in v.b.a. have existed for quite a while. there have been efforts, believe me, to try to improve the system. the one difference that i think really is in place right now is that i believe that we are seeing the advent of technology